Gold News & Info

Source: Dana Samuelson, American Gold Exchange

Austin, TX— Gold finished the week in New York down 0.7% from last Friday�s close but remains up almost 16% so far this year. Following last week�s gains of over 7% it�s not surprising for gold to give a little back this week as the yellow metal settled into its highest trading range of 2016. The last 48 hours have seen gold consolidate around the $1,225 price level, plus or minus $15 per ounce, in a $1,210 to $1,240 trading range.

Following yesterday�s move higher gold traded in a tight $1,222 to $1,236 range overnight and during the New York session today, holding onto Thursday�s gains in the process. With the exception of oil, which dropped 3.15% from yesterdays close to $29.82, markets world-wide were range bound today in mostly narrow trading. Oil was pressured following the news that U.S. crude stockpiles have risen to their highest level since 1930. And while discussions have begun among OPEC members to freeze production levels at January 2016 levels, a meaningful agreement that all potential participants including Saudi Arabia, Russia, Venezuela and Iran can actually adhere to remains just that, talk, at this point in time.

The U.S. Labor Department released information today indicating the CPI (which factors out food and energy) rose 0.3% for January and 2.2% from a year earlier, its highest level since July of 2012. Meanwhile the Commerce Department�s PCE (Personal Consumption Expenditures) index didn�t budge from last year and December�s 1.4% reading. The Fed puts more emphasis on the PCE index, which continues to remain well below their 2.0% inflation target. Economists see the PCE index as a more reflexive index towards shifts in consumer spending than the CPI. If the U.S. economy can ward off the effects of a slowing global economy, economists expect the PCE to turn higher in comings months, reflecting gains in the CPI.

At the Comex close: April gold rose $4.50 to $1,230.80; March silver lost $0.059 cents to $15.373; April platinum remained unchanged at $945.60; March palladium declined $5.80 to $499.05 an ounce.